GST on B2C imported digital services will be collected through OVR. Under the OVR, overseas vendors and electronic marketplace operators who sell B2C digital services (e.g. apps, music, videos and e-books) to non-GST registered persons are required to register for GST where:

Global turnover exceeds $1 million per year; and

Sales to Singapore buyers exceed $100,000 per year.

This is a two-level threshold, different from local businesses. To local buyers, this change means an additional 7% GST charge.

The above is expected to be introduced on or after 1 January 2020. IRAS will release details of the change by end-February 2018.

Business-to-Business (B2B) Imported Services: Reverse Charge

The reverse charge on B2B imported services will be limited to buyers who will not be entitled to full input GST claim. These are traditionally the banks, finance companies, mixed and residential property developers and holding companies that are unable to claim GST in full.

This is also expected to be introduced on or after 1 January 2020. IRAS will release details of the change by end-February 2018.